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Monday, June 21, 2010

Gold Holds Steady After Records Last Week

Recent behavior of gold has had it plunging after a record day, and the fact that gold prices are holding up well today is a good sign that it may have gained support, and may be ready for another upward push.

Risk appetite has returned some today, and investors have been moving their money out of gold into other sectors.

There is nothing to conclude that this will continue, as economic data recently released showed there is little to be optimistic about in the American or global economies.

If there is much growth, it'll be very slow, if it happens at all. The obvious exception will be China, which will be growing at several percentage points below its recent average, which had reached close to 12 percent.

This ensures a strong case for gold continuing to go up, and the decision by China to float their currency more will not only enhance the desirability of gold, but will help other commodities as well; albeit over a period of time.

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